In order to ascertain whether a pension fund holds sufficient buffers to offset fluctuations in assets vis-à-vis its obligations, the so-called ‘policy funding ratio’ must be scrutinised according to the regulations in the nFTK. The policy funding ratio is the average of the funding ratios over the last 12 months and must at least be equal to the statutory funding ratio.

A very small reserve shortfall occurred as of July 1, 2015 following the introduction of the nFTK. The policy funding ratio of 124% is just below the statutory funding ratio. The statutory requirements dictate that a pension fund has to draw up a recovery plan in the event of a reserves shortfall. The Pension Fund has drawn up a recovery plan and submitted it to the Netherlands National Bank.

The Board of the Pension Fund sees no reason for concern and is not taking any special measures. The recovery plan shows that on the basis of its current policy, the Pension Fund’s policy funding ratio is anticipated to have recovered to the requisite level within two years.

It goes without saying that the Board is closely monitoring the developments on the financial markets. At the present time, the developments do not make it necessary to adjust the recovery plan.